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home > home mortgages > articles > payments > US payment formula US home mortgage payment formulaThis is the US home mortgage payment formula. Use it to calculate what your monthly, biweekly or weekly US home mortgage payments will be. To be perfectly honest with you, this formula is a little bit complicated. And in order to use it you'll need paper, a pencil and a hand held calculator that has an 'exponent' button on it that usually looks like the following picture: And the hand held calculator you use has to be accurate. To test to see if your calculator is accurate enough, type into it the number "0.05" then divide it by the number "2." If your answer is "0.025" your calculator is accurate enough. But, if your answer is "0.03" your calculator isn't accurate enough (cause it's rounding off numbers too soon). One more point: you'll be using a lot of decimal numbers (like: 0.0042398729), and you'll need to write down all the numbers after the decimal point on your calculator screen. Use this US home mortgage payment formula, by following twelve steps  starting with step one. Pssst! You can also use the home mortgage payment calculators to calculate your home mortgage payments. US home mortgage payment formula: Step oneThe first step of using this US home mortgage payment formula, is to choose your mortgage principal. On your piece of paper, write "step one answer = [answer goes here]." A mortgage principal is the amount of money you want to borrow to get your home mortgage. So for example, if you want to borrow $100,000 for your home mortgage, then you would write down: "step one answer = 100000." Move on to step two. US home mortgage payment formula: Step twoThe second step of using this US home mortgage payment formula, is to choose your mortgage amortization length. You can choose anywhere from a 5 year mortgage amortization length to a 25 year mortgage amortization length. Note: If you want to choose an amortization length in half years, you'll need to use the number "0.5." So for example, if you want to choose a 5 1/2 year amortization length, you'll need to use the number "5.5". On your piece of paper, write "step two answer = [answer goes here]." Mortgage amortization is the length of time you want to take to completely pay off your home mortgage. So for example, if you want to have a home mortgage for 25 years, then you would write down: "step two answer = 25." Move on to step three. US home mortgage payment formula: Step threeThe third step of using this US home mortgage payment formula, is to choose your mortgage rate. On your piece of paper, write "step three answer = [answer goes here]." A mortgage rate is the percentage of interest you'll be charged on your principal (the amount of money you borrowed) by your lender for borrowing money from them. So for example, if you choose a home mortgage rate of 5%, then you would write down: "step three answer = 5." If you're getting a home mortgage, choose your rate from the list of the current mortgage rates below. Or, if you're getting a multiresidential mortgage (a mortgage for a property that has more than one living unit like duplexes or apartment buildings), you'll have to choose a rate that you predict or hope you'll get for your multiresidential mortgage. Why? Cause there's never "set" mortgage rates for multiresidential mortgages: they're always different depending on your particular situation (your property type, how much you borrow etc.) Current Mortgage Rates: List rates however they are on the current rates page.A TABLE HERE I THINK. Just so you know: these current mortgage rates are available from The Mortgage Store Online's "institutional lenders" (like banks and trust companies). Move on to step four. US home mortgage payment formula: Step fourThe fourth step of using this US home mortgage payment formula, is to divide your step three answer by the number "100." On your piece of paper, write: step four answer = step three answer / 100 So for example, if your answer in step three was "5" then you would write: step four answer = 5 / 100 Move on to step five. US home mortgage payment formula: Step fiveThe fifth step of using this US home mortgage payment formula, is to take your answer from step two and times it by the number "12." On your piece of paper, write: step five answer = step two answer x 12 So for example, if your answer in step two was "5" then you would write: step five answer = 5 x 12 Move on to step six. US home mortgage payment formula: Step sixThe sixth step of using this US home mortgage payment formula, is to take your answer from step four and divide it by the number "12." On your piece of paper, write: step six answer = step four answer / 12 So for example, if your answer in step four was "0.05" then you would write: step six answer = 0.05 / 12 Move on to step seven. US home mortgage payment formula: Step sevenThe seventh step of using this US home mortgage payment formula, is to take your answer from step six and add it to the number "1." On your piece of paper, write: step seven answer = step six answer + 1 So for example, if your answer in step six was "0.004166666666" then you would write: step seven answer = 0.004166666666 + 1 Move on to step eight. US home mortgage payment formula: Step eightThe eighth step of using this US home mortgage payment formula, is to take your answer from step seven and raise it to the exponent of the number you got in step five. To do this, type your step seven answer into your calculator. Then, press the 'exponent' button on your calculator which usually looks like the following picture: Then, type in the number you got in step five, and press the 'equal' sign (=). On your piece of paper, write: step eight answer = step seven answer 'to the exponent' step five answer So for example, if your answer in step seven was "1.004166666666" and your answer in step five was "60" then you would write: step eight answer = 1.004166666666 'to the exponent' 60 Pssst! Notice how many numbers after the decimal have to be used....it's important to write them all down! Move on to step nine. US home mortgage payment formula: Step nineThe ninth step of using this US home mortgage payment formula, is to take your answer from step one, and times it by your answer in step six, and then times that answer by your answer in step eight. On your piece of paper, write: step twelve answer = step one answer x step six answer x step eight answer So for example, if your answer in step one was 100,000, and your answer in step six was 0.004166666666, and your answer in step eight was 1.283358627 then you would write: step nine answer = 100000 x 0.004166666666 x 1.283358627 Move on to step ten. US home mortgage payment formula: Step tenThe tenth step of using this US home mortgage payment formula, is to take your answer from step eight and subtract the number "1." On your piece of paper, write: step ten answer = step eight answer  1 So for example, if your answer in step eight was 1.283358627then you would write: step ten answer = 1.283358627  1 Move on to step eleven. US home mortgage payment formula: Step elevenThe eleventh step of using this US home mortgage payment formula, is to take your answer from step nine and divide it by your answer from step ten. The answer to this step will be the amount your monthly home mortgage payments could be. On your piece of paper, write: step eleven answer = step nine answer / step ten answer So for example, if your answer in step nine was 534.7326758 and your answer in step ten was 0.283358627 then you would write: step eleven answer = 534.7326758 / 0.283358627 To calculate what your biweekly and/or weekly home mortgage payments would be, move on to step twelve. US home mortgage payment formula: Step twelveThe twelfth step of using this US home mortgage payment formula, is to take your answer from step eleven and use it to calculate your biweekly and weekly home mortgage payments.
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